Publications

On behalf of the #Bundesnetzagentur, Düsseldorf Competition Economics (together with the Büro für Energiewirtschaft und technische Planung) has developed strategies for the management of #gas storage facilities by Trading Hub Europe GmbH. Trading Hub Europe GmbH was commissioned last year by the #Bundesnetzagentur to procure #natural gas for storage to ensure #security of supply in winter.

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The expert opinion also shows:

• Trading Hub Europe GmbH had little room for flexibility in procurement at the beginning of storage management and not all marketing options were available to the company, which led to comparatively high costs in procurement.

• Trading Hub Europe GmbH did not influence gas market prices in a way that was unusual for the market. In a market with tight supply, any additional demand tends to drive up prices. However, the strong price increase in the summer of 2022 is not solely and exclusively due to the storage behaviour of Trading Hub Europe GmbH. Rather, the reason for the price increases is likely to be that storage facilities were filled throughout Europe at this time and at the same time considerable Russian gas deliveries were lost.

Fritz, D., Haucap J., Thorwarth, S.

Eine Studie im Auftrag der VDAI Verlags- und Veranstaltungsgesellschaft mbH.

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Kurzfassung [.pdf[

Zusammenfassung

Die Ergebnisse zeigen, dass die Kanalisierungsquote im Jahr 2012, also bevor neue restriktive Regulierungsmaßnahmen des Glücksspielstaatsvertrags 2012 und der sechsten/siebten Novellierungen der Spielverordnung 2014 ihre Wirkung zeigten, auf einem Höchststand von 96 Prozent lag. Regulierung war damals erfolgreich, ein Schwarzmarkt zu diesem Zeitpunkt kaum mehr vorhanden. Anschließend bewirkten die Regelungsverschärfungen 2012/14 jedoch eine fatale Trendumkehr. Die neuen rechtlichen Rahmenbedingungen machten das legale regulierte Angebot an Geldspielgeräten aus Verbrauchersicht unattraktiver, verhinderten die weitere natürliche Ausdehnung des legalen Marktes zur Deckung der bestehenden Verbrauchernachfrage und schufen hingegen Raum für ein Wachstum des illegalen und unregulierten Marktes. Bis zum Jahr 2022 führte dies zu einem Absinken der Kanalisierungsquote auf nur noch 54 bis 70 Prozent. Der Schwarzmarktanteil betrug also 30 bis 46 Prozent.

Allerdings gilt zu berücksichtigen, dass die Änderungen der sechsten bzw. siebten Novelle der Spielverordnung in der Praxis größtenteils erst ab Ende 2018 und 2019 wirkten. Weiterhin bestehen bis heute noch Übergangsregelungen bezüglich der Mehrfachkonzessionen und Mindestabstandsregeln für Bestandsspielhallen. Die negativen Auswirkungen dieser noch nicht vollständig umgesetzten Restriktionen sind in der berechneten bereits sehr niedrigen Kanalisierungsquote von 2022 demnach noch gar nicht berücksichtigt. Unter den bestehenden Regulierungsmaßnahmen muss daher davon ausgegangen werden, dass die Kanalisierungsquote zukünftig noch weiter absinken wird. In dieser Studie wurde hierzu eine Prognose entwickelt, die zu dem Ergebnis kommt, dass die Kanalisierungsquote bei unveränderter Regulierung im Jahr 2026 bei nur noch 38 bis 55 Prozent liegen wird. Das heißt: 2026 dürfte, falls die Politik nicht tätig wird, bereits (weit) über die Hälfte der Gesamtnachfrage nach Automatenspielen durch illegale Schwarzmarktangebote bedient werden.

Diese Entwicklung bestätigt auch der dargelegte Kanalisierungsindex. Dieser gibt die kanalisierende Wirkung der Maßnahmenbündel der unterschiedlichen Regulierungsregime an. Je höher der berechnete Indexwert ist, desto zielführender ist das Maßnahmenbündel im Hinblick auf eine hohe Kanalisierungsrate. Für das Regulierungsregime I, also den Zeitraum vor dem Jahr 2006, wurde ein Indexwert von 156 berechnet. Die Kanalisierungsquote lag im Jahr 2006 bei nur noch 59 Prozent. Demzufolge war das damalige Maßnahmenbündel nicht geeignet, das Spiel hinreichend in legale Bahnen zu kanalisieren. Das Maßnahmenbündel des heute geltenden Regulierungsregimes III wurde mit einem Wert von 117 bewertet. Damit weist die heutige Regulierung des gewerblichen Automatenspiels eine noch schlechtere Kanalisierungswirkung auf als die Regulierung vor dem Jahr 2006. Eine Trendumkehr ist unter dem aktuellen Regulierungsregime nicht möglich; es ist keinesfalls dazu geeignet, das staatsvertraglich festgeschriebene Kanalisierungsziel zu erreichen. Folglich besteht dringender politischer bzw. regulatorischer Handlungs- und Nachsteuerungsbedarf.

Beim Klimaschutz drängt die Zeit! In seiner Kolumne für die Rheinische Post erklärt unser Partner Justus Haucap, warum die Strategie von Wirtschaftsminister Robert Habeck falsch ist und ein deutsches Tempolimit so gut wie nichts zum Klimaschutz beitragen kann.

Zum Artikel

Geht es nach Ernährungsminister Cem Özdemir, sollen Kinder mit Werbeverboten vor ungesunden Lebensmitteln geschützt werden. In der Rheinischen Post erklärt unser Partner Justus Haucap, warum Özdemirs Vorhaben nichts bringt.

Zum Artikel

Christian Wey, Benjamin Schröder und Daniel Fritz, Creating the single market: The AB InBev case in perspective, November 2022, Concurrences No 4-2022, Art. N° 108966, pp. 36-42

Das Bundeswirtschaftsministerium plant die 11. Novelle des Gesetzes gegen Wettbewerbsbeschränkungen (GWB). Die Lebensmittelzeitung hat hierzu mit DICE Consult-Partner Justus Haucap ein Interview geführt.

Zum Interview

In einem Interview mit der Frankfurter Allgemeinen Zeitung (FAZ) erklärt unser Partner Prof. Dr. Justus Haucap, warum der Tankrabatt nicht bei den Verbrauchern ankommt und plädiert für eine Verschärfung des Wettbewerbsrechts. "Entflechtungen sollen im Extremfall möglich sein", so Haucap. Im Mineralölmarkt sieht er vor allem die Rolle der Raffinerien kritisch. Nach einem Vorschlag von Bundeswirtschaftsminister Robert Habeck, soll das Wettbewerbsrecht verschärft und das Kartellamt mit zusätzlichen Befugnissen als bisher ausgestattet werden.
Haucap regte zudem auch Reformen in einem anderen Bereich an. "Mit einer Aufspaltung der Bahn könnte die Ampelkoalition ein Zeichen setzen, dass sie es mit der Stärkung des Wettbewerbs ernst meint."

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Haucap, J., C. Kehder, M. Prüfer

An expertise on behalf of the Mazars GmbH & Co. KG
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The key findings at a glance

• The audit market has fundamental functional deficiencies that hinder effective competition in the "public interest entities" market segment. This negatively impacts audit quality and poses risks to the high public interest in financial market stability, investment and growth.

• The problems of high market concentration and barriers to entry will not solve themselves: An adjustment of the market design is urgently needed and politically agreed. In their 2021 coalition agreement, the governing parties stipulated that they would tackle high market concentration. The EU Commission also recently launched a round of consultations on reforming the European legal framework for the audit market.

• Various reform options are available for solving the competition problems. They promise to promote market diversity, quality and financial market stability. Possible measures include joint audits based on the dual control principle, state appointment of auditors, capping of market shares and competition-sensitive criteria for the award of public audit contracts.

Welche Auswirkungen hätte ein Embargo von russichem Gas? In seiner Kolumne in der Rheinischen Post geht unser Partner Prof. Dr. Justus Haucap davon aus, dass ein Embargo von russischem Gast insgesamt zwar verkraftbar wäre, aber insbesondere NRW als bedeutendster Chemiestandort in Deutschland die Auswirkungen besonders spüren würde.
Lesen Sie die gesamte Kolumne

Seit Kriegsausbruch möchte die Bundesregierung Deutschland unabhängiger von russischen Energieimporten machen. Doch für eine stabile Energieversorgung braucht es mehr, schreibt unser Partner Prof. Dr. Justus Haucap, gemeinsam mit Prof. Dr. Veronika Grimm (Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung/ Uni Erlangen-Nürnberg) und Prof. Dr. Jürgen Kühling (Vorsitzender der Monopolkommission/ Uni Regensburg), in einem Gastbeitrag für die F.A.Z.

Zum F.A.Z.-Gastbeitrag "Damit der Strom sicher fließt"

Haucap, J., U. Heimeshoff, Zeitschrift für Wettbewerbsrecht, Vol. 20, No. 1, pp. 80-103.

Abstract
Cartel damage claims regularly involve economic experts from both parties. Typically, these expert opinions differ significantly in their results. While the expert opinions of the defendants almost always reach the conclusion that no damage has been caused, the plaintiffs' experts almost always find significant damages. For the court, it is necessary – especially after the judgements of the Federal Supreme Court in Schienenkartell II and LKW-Kartell II – to comprehensively assess these economic expert opinions. This article offers assistance in this regard and addresses the most important problems in selecting suitable approaches to damage estimations, which can guide the court's assessment of economic expert opinions. In addition, we propose that competition authorities should offer initial guidance to the courts by providing a first estimate of the likely expected magnitude of cartel damages.

The public broadcasting service costs 18.36 euros a month. Less would be enough, says economist Justus Haucap. Communications scientist Walter Hömberg sees it differently.

Haucap, J., Kehder, Ch., Loebert I., Nomos 2021.

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Abstract
In light of the dynamic growth of digital technologies and the platform economy business models based on them, this study examines the potential for and barriers to the development of platforms in the B2B sector, taking North Rhine-Westphalia as an example. The study also develops options for further promoting potential and removing barriers. Two locational advantages stand out for North Rhine-Westphalia: the strong industrial sector (including mechanical engineering, the chemical industry or the steel and metal industry and processing) and North Rhine-Westphalia as the location of numerous international trade fairs.

Die Kluft zwischen arm und reich wächst. DICE Consult-Partner Justus Haucap diskutiert im Handelsblattmit Marcel Fratzscher (DIrektor DIW) über Lösungen, wie sich die Lücke schließen lässt.

Zum Streitgespräch im Handelsblatt.

Haucap, J., D. Fritz, S. Thorwarth. An expert opinion commissioned by the Fachverbands Messen und Ausstellungen e.V. (FAMA).

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Summary

In contrast to almost all other countries, the trade fair sector in Germany has a special feature.The trade fair industry in Germany - in contrast to almost all other countries - is characterized by the fact that public trade fair companies are not only operators of the trade fair infrastructure,but also operate their own trade fairs as vertically integrated providers, thus competing with private trade fair organizers. The private trade fair organizers are not integrated, but are rather on access to the trade fair infrastructure of the public trade fair companies and are thus dependent on them.

In terms of competition policy, there is a danger here of anti-competitive self-preference. This can manifested on the one hand in the incentive to give preferential treatment to "in-house" trade fairs in trade fairs, for example in the allocation of slots. On the other hand, however, the sole information within a trade fair company - i.e. between the operator of the trade fair infrastructure and the infrastructure and the in-house trade fair organizers - can lead to disadvantages for private trade fair operators. In the worst case, a vertically integrated provider can even take over and organize a trade fair itself.

In order to analyze this problem situation, DICE Consult GmbH ("DICE Consult") under the leadership of of Professor Dr. Justus Haucap was comissioned with a short expert report on equal opportunities in Germany as a trade fair location by the Fachverbands Messen und Ausstellungen e.V. (FAMA). The present report is the result of this commission.

In essence, it shows that true equality of opportunity does not currently exist in Germany as a trade fair location. On the one hand, vertically integrated suppliers have factual incentives to favor themselves, on the other hand, there are no effective compliance rules. It would therefore be advisable for the trade show industry to commit to a code of conduct in order to prevent possible discrimination and self discrimination and anti-competitive self-preferential treatment.

Coppik, J., U. Heimeshoff, Handelsblatt Fachmedien.

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r Kartellschadensermittlung ab.

How must the model of the social market economy be further developed in order to create the conditions for a successful digital transformation in Germany and Europe? To this end, in May 2019 the German Federal Ministry for Economic Affairs and Energy commissioned a strategic foresight process on the economic prospects of digitization launched and DICE Consult together with the VDI Technology Center and lawyer Prof. Dr. Christoph Busch [University of Osnabrück] to develop future scenarios on the economic prospects of digitization and to derive from them economic policy options for action to adapt the regulatory framework of the social market economy. The results of the study were presented on June 18, 2021 at a conference with the participation of German Federal Minister of Economics Peter Altmaier.

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Bodnar, O., M. Fremerey, H.-T. Normann and J. Schad, The Effects of Private Damage Claims on Cartel Stability: Experimental Evidence, Forthcoming in The Journal of Law, Economics, & Organization.

Abstract

Private damage claims against cartels may have negative effects on leniency: whereas whistleblowers
obtain full immunity regarding the public cartel fines, they have no or only restricted protection against
private third-party damage claims. This may stabilize cartels. We run an experiment to study this
issue. Firms choose whether to join a cartel, may apply for leniency afterwards, and then potentially face
private damages. We find that the implementation of private damage claims reduces cartel formation but
makes cartels indeed more stable. The negative effect of damages is avoided in a novel setting where the
whistleblower is also protected from damages.

Releasing patents on Corona vaccines may look like a cheap short-term contribution to speeding up vaccination and containing the world's pandemic. In the long term, however, the consequences of curtailing patent rights would be fatal, writes DICE Consult partner Prof. Dr. Haucap in the WELT. In his article, he cites four reasons why it is imperative that the German government withstand international pressure.

First, he says, it is not clear whether releasing the patents could increase production at all. Second, future incentives for innovation would be destroyed; third, BionTech does not have a monopoly because several suppliers have already been approved; and fourth, there are better alternatives to patent release. For example, the export of vaccines by industrialized nations could be supported more strongly than it has been up to now.

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Haucap J., U. Heimeshoff and N. Gösser, Preis-Kosten-Scheren im Telekommunikationssektor, Nomos-Verlag, March 2021.

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Abstract

For competition in telecommunications markets, tests for price–cost squeezes have become increasingly important, as both price differentiation between end users and product bundling based on regulated and unregulated inputs are on the rise. This study first summarises the theory of predatory pricing and European and German case practice regarding price–cost squeezes. On this basis, it suggests ways to pragmatically adapt the existing test procedure in order to better identify price–cost squeezes in specific tariffs/rate bundles.

Cabral L., J. Haucap, G. Parker, G. Petropoulos, T. Valletti and M. Van Alstyne, The EU Digital Markets Act, Publications Office of the European Union, Luxembourg, 2021.

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Abstract
Over the last years, several reports highlighted the market power of very large online platforms that are gatekeeping intermediaries between businesses and consumers, and the difficulty for classic competition policy tools to deal effectively with anti-competitive practices in these platforms. In response to this, the European Commission recently published a proposal for a Digital Markets Act (DMA) to complement existing competition policy tools by means of ex-ante obligations for platforms. This report presents an independent economic opinion on the DMA, from a high-level Panel of Economic Experts, established by the JRC and based on existing economic research and evidence. The Panel endorses the vision encapsulated in the DMA, including the designation of large gatekeeper platforms and a series of ex-ante obligations they should comply with. The Panel points out the challenge of striking a balance between the benefits from network effects of large platforms and the potential negative effects from anti-competitive behaviour and winner-takes-all market forces in online services. While some types of anti-competitive behaviour are well-known from classic competition cases, data-driven multi-sided platforms have found new ways of tying, bundling and self-preferencing that present new challenges. The report explores these behaviours in specific settings, including in online advertising and mobile ecosystems. It discusses ways to use valuable data gathered by platforms for pro-competitive purposes and the wider benefit of society in order to achieve a higher standard of fairness in the distribution of the social value generated by large platforms. Information asymmetry between platforms and regulators remains an issue in the effective implementation of the obligations.

Haucap, J., D. Fritz, S. Thorwarth.

Ein Gutachten im Auftrag des Deutschen Sportwettenverbands (DSWV) und des Deutschen Online Casinoverbands (DOCV).

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Kurzfassung

Die Bundesländer haben sich auf den Entwurf des Glücksspielneuregulierungsstaatsvertrags („GlüStV 2021“) geeinigt, der am 1. Juli 2021 in Kraft treten soll. Der Entwurf des GlüStV 2021 baut auf dem bisherigen Glücksspielstaatsvertrag auf und lockert die bisherige strikte Verbotspolitik im Glücksspielwesen, die sich vor allem im Zuge der Digitalisierung als nicht mehr zeitgemäß erwiesen hat.

Unter anderem sollen bestimmte Online-Glücksspiele unter strengen Regulierungsauflagen ermöglicht werden, wobei unterschieden werden soll zwischen (i) virtuellen Automatenspielen, (ii) Online-Poker und (iii) Online-Casinospielen (Roulette, Black Jack etc.). Neben dem GlüStV 2021 ist die Ausgestaltung der Besteuerung dieser Online-Glücksspiele ein zentraler Punkt der Neuregulierung. Die Besteuerung hat einen entscheidenden Einfluss darauf, ob die Ziele des GlüStV 2021 erreicht werden können. Das vorliegende Gutachten untersucht, wie die Besteuerung des Online-Glücksspiels ausgestaltet werden muss, damit die Ziele des GlüStV 2021 erreicht und unterstützt werden können.

Eine effektive Kanalisierung hin zu legalen Online-Glücksspielen muss durch eine funktionierende Besteuerung flankiert werden, welche Unterschiede der einzelnen Spielformen berücksichtigt und welche das legale Glücksspiel für Spieler nicht so unattraktiv macht, dass diese doch im nicht-legalen Markt spielen. Genau dies wäre bei einer Besteuerung des Spieleinsatzes in Höhe von acht Prozent jedoch zu erwarten: Eine solche Spieleinsatzsteuer gefährdet das Ziel der Kanalisierung des Glücksspiels in massiver Weise, weil eine Spieleinsatzsteuer von acht Prozent die möglichen Ausschüttungsquoten und somit die Attraktivität und Wettbewerbsfähigkeit des legalen Spiels so eklatant verschlechtert, dass viele Spieler lieber im nicht-legalen Markt spielen werden.
Da eine achtprozentige Spieleinsatzsteuer mit einer deutlichen Verschlechterung für all diejenigen Spieler einhergeht, welche ihre Spielaktivitäten im regulierten Markt tätigen, werden sehr viele dieser Spieler in den nicht-regulierten bzw. den Schwarzmarkt abwandern bzw. dort verbleiben. Das übergeordnete Ziel der Kanalisierung wird somit gänzlich verfehlt, sodass (a) auch die anderen Ziele des GlüStV 2021, wie der Jugend- und Spielerschutz, verfehlt werden, da sich diese nicht im nicht-regulierten Markt verfolgen lassen, und (b) auch das besteuerbare Gesamtspielvolumen drastisch sinkt und somit das erwartete Steueraufkommen nicht erreicht wird. Somit wirkt eine Spieleinsatzsteuer nicht nur dem Kanalisierungsziel, sondern auch den anderen Zielen des GlüStV sowie den fiskalischen Interessen gänzlich entgegen. Der GlüStV 2021 wird somit unter einer Besteuerung des Spieleinsatzes gänzlich scheitern.

Beispiele aus anderen Ländern zeigen, dass die Besteuerung des Online-Glückspiels effektiv nur über eine Bruttospielertragssteuer funktionieren kann. Diese sollte im Optimalfall zwischen 15 und 20 Prozent liegen. Nur so lässt sich eine hohe Kanalisierungsquote bei gleichzeitig hohem Steueraufkommen erreichen. Da Lotterien und Sportwetten sich maßgeblich in Funktionsweise, Ausschüttungsquoten und Wettbewerbsintensität von virtuellen Automatenspielen, Online-Poker und Online-Casino unterscheiden, sollten wenigstens diese drei Spielvarianten nicht einer Spieleinsatzsteuer unterliegen, sondern einer Bruttospielertragssteuer. Nur so lassen sich alle im GlüStV 2021 formulierten Ziele erreichen. Erwägenswert wäre darüber hinaus, auch bei Lotterien und Sportwetten die Besteuerung auf eine Bruttospielertragssteuer umzustellen.

Bataille, M., O. Bodnar, A. Steinmetz, and S. Thorwarth, Wirtschaft und Wettbewerb, Heft 01, p. 25-29.

Haucap, J., U. Heimeshoff, G. Klein, D. Rickert and C. Wey, Vertical Relations, Pass-through, and Market Definition: Evidence from Grocery Retailing, International Journal of Industrial Organization 74, 102693.

Abstract

We examine how different pass-through rates, from retail input- to final consumer prices, and different vertical contracts affect upstream market definition. Simple theoretical considerations suggest that vertical restraints induce higher pass-through rates and thus lead to a wider market definition when compared to linear wholesale pricing. Data from grocery retailing is used to quantify the empirical implications of our theoretical assertion. We find that resale price maintenance leads to larger upstream market definitions than linear pricing. We therefore advise competition authorities to carefully model vertical market structures, whenever they expect incomplete pass-through to be important.

Auf dem IPhone können Entwickler ihre Apps nur über den Apple App-Store anbieten und vertreiben. Das sorgt für Unmut. Die Neue Zürcher Zeitung (NZZ) hat hierzu DICE Consult Partner Prof. Dr. Justus Haucap in einem Interview befragt.

Zum Interview

In the webtalk RIGHT CONVENTIONAL, DICE Consult Partner Prof. Dr. Justus Haucap talks to the expert for food antitrust law, Dr. Kim Manuel Künstner, about the emergence of "low prices" for food along the supply chain. During the 45 minutes the competition experts discussed whether the prices are really too hot.

To the record

In an interview with WirtschaftsWoche, DICE Consult-Partner Prof. Dr. Justus Haucap praises the cabinet draft of the 10th GWB amendment.
In the future it will be much easier for the Bundeskartellamt to prohibit certain practices by platform companies, which are of outstanding cross-market importance, before the abuse of market position occurs, said Haucap. In addition, breaking up Google and Co. would not be conducive to achieving the goal. Instead, the competition economist argues that companies should be regulated and their specific behavior controlled.

To the Interview at wiwo.de

Goesser N., N. Moshgbar, Smoothing Time Fixed Effeckts, DICE Discussion Paper No. 343, July 2020.

Abstract

Controlling for time fixed effects in analyses on longitudinal data by means of time-dummy variables has long been a standard tool in every applied econometrician’s toolbox. In order to obtain unbiased estimates, time fixed effects are typically put forward to control for macroeconomic shocks and are (almost) automatically implemented when longitudinal data are analyzed. The applied econometrician’s toolbox contains however no standard method to control for time fixed effects when time-dummy variables are not applicable. A number of empirical applications are crucially concerned with both suffering from bias due to omitting time and time-dummies being inapplicable. This paper introduces a simple and readily available parametric approach to approximate time fixed effects in case time dummy variables are not applicable. Applying Monte Carlo simulations, we show that under certain regulatory conditions, trend polynomials (smoothing time fixed effects) yield consistent estimates by controlling for time fixed effects, also in cases time-dummy variables are inapplicable. As the introduced approach implies testing nested hypotheses, a standard testing procedure enables the identification of the order of the trend polynomial. Applications that may considerably suffer from bias in case time fixed effects are neglected are among others cartel overcharge estimations, merger and regulation analyses and analyses of economic and financial crises. These applications typically divide time into event and control periods, such that standard time dummies may not be applicable due to perfect multicollinearity. In turn, their estimates of interest most crucially need to be purged from other (unobserved) time dependent factors to be consistent as time may by construction induce omitted-variable bias.

Czarnitzki, D., P. Hünermund and N. Moshgbar, International Journal of Industrial Organization 71, 102620.

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The Corona crisis has led to an almost complete collapse of aviation. The state helps Lufthansa with billions of euros and becomes the owner of the company with 20 percent. When and where is a state entry justified? And how do you get rid of the state? DICE Consult Partner Prof. Dr. Justus Haucap together with the Chairman of the Monopolies Commission, Prof. Dr. Achim Wambach, reflected on answers in the Frankfurter Allgemeine Zeitung (FAZ).

To the article

Haucap, J., C. Kehder

In May 2019, first press reports emerged that Thyssenkrupp AG may potentially sell parts of its elevator division, which produces both elevators and escalators. In early September 2019, Thyssenkrupp AG announced that it also considers the option to sell the entire elevator division as a whole. Kone Corporation, a major player in the elevator and escalator industry (“E&E industry”), has publicly signalled its interest in an acquisition. The Company further signalled that in case of a successful bid it would divest the complete European elevator business of Thyssenkrupp to the private equity firm CVC for antitrust reasons. Several other buyout groups compete with Kone without facing similar antitrust issues. We use the “battle for Thyssenkrupp’s crown jewel” as an opportunity to discuss competitive effects of mergers in highly concentrated markets.

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DICE Consult Partner Prof. Dr. Justus Haucap talks in an interview with the legal network "Who's Who Legal" about the future of competition .
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Haucap, J., U. Heimeshoff and A. Rösner, The Impact of Consumer Protection in the Digital Age: Evidence from the European Union, International Journal of Industrial Organization 73, 102585.

We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts’ evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.

Haucap, J., Plattformökonomie: neue Wettbewerbsregeln — Renaissance der Missbrauchsaufsicht, Wirtschaftsdienst, Heft 13, p. 20–29.

To the Article

Abstract

While digital platforms have intensifi ed competition in many markets, there is also a higher risk of market foreclosure due to the “winner takes all”-nature of these markets. Hence, there are good reasons for a strengthening of competition law, as now planned with Germany’s competition law reform. Focussing on the control of abuse of market power instead of merger control is well founded from an economic perspective, as a stricter control of abusive behaviour makes merger control less important. Strengthening merger control is difficult: While this could better address the problem of so-called killer acquisitions, it would also worsen the problem of GAFAM kill zones, which is equally relevant.

Justus Haucap, Oliver Budzinski, Nomos Verlag, Baden-Baden.

Namhafte Autorinnen und Autoren von renommierten Universitäten und Institutionen analysieren in diesem Band das seit Jahrzehnten kontrovers diskutierte Verhältnis von Recht und Ökonomie aus verschiedenen Blickwinkeln und Disziplinen und widmen sich dabei aber aktuellen Themen.

Zunächst wird in Teil 1 des Werkes das Verhältnis von Recht und Ökonomie in zwei Grundlagenkapiteln je aus der Sicht der Rechtswissenschaften und der Wirtschaftswissenschaften betrachtet, bevor in Teil 2 einzelne Politikfelder in den Fokus rücken.

Wichtige Schwerpunkte sind die Staatsschuldenkrise, die Finanzmärkte, das Verkehrswesen, der Medien- und Telekommunikationssektor sowie das Medienrecht, das Patentrecht, das Kartellrecht und die Krankenhausreform 2015.

Das Werk ist Teil der Reihe Wettbewerb und Regulierung von Märkten und Unternehmen, Band 37.

J. Haucap, Kerber H., Schweitzer H. and Welker R., CPI Antitrust Chronicle 12/2019, p. 2-9.

In 2018, the German Ministry of Economics and Energy commissioned a study on options for competition law reforms regarding the abuse of market power in digital markets. In this paper, the study’s authors summarize their analysis which had a major impact on Germany’s current competition law reform.

Haucap J. , M. Coenen, in: Wettbewerb und Regulierung von Märkten und Unternehmen, Band 40, Nomos.

For 15 years, the ambulant medical sector has been systematically opened up more and more to hospitals. Hospitals and general practitioners are therefore increasingly in competition with each other, but often under unequal conditions with regard to demand planning, remuneration and investment financing. The resulting distortions of competition are analysed by the authors as examples for the fields of oncology, neurology and psychiatry and reform options are presented to reduce distortions of competition.

Haucap, J., Ch. Helle,I. Löbert, Oliver Raschka, Zeitschrift für Energiewirtschaft (2019), p. 1-14.

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Abstract
In the wake of the energy system transformation and the liberalisation of the electricity industry, transmission system operators (TSOs) have been given comprehensive powers and competences to ensure network and system security. These are capable of significantly affecting competition in markets that are upstream and downstream of the network. As system services increasingly have to be provided by TSOs, non-discriminatory implementation and the efficiency of the measures taken are becoming increasingly important in ensuring competition in the electricity industry. Transparency deficits that prevent a review of the measures taken by the TSOs and a discussion about possible changes in the market design should therefore be viewed critically, especially since the TSOs are regulated by the Federal Network Agency (BNetzA) and there must also be no unilateral discretion in the fulfilment of information obligations. The article shows the existing possibilities for TSOs to intervene in market developments, identifies existing transparency deficits and proposes solutions aimed at improving transparency.

Normann, H.-T., 46th Annual Conference of the European Association for Research in Industrial Economics (EARIE), Barcelona, Spain.

Recently, private damage claims in cartel cases have gained attention and triggered a debate about potentially negative effects they may have on leniency, hitherto a prime tool to uncover cartels. Private damage claim actions can lead to a trade off between public and private enforcement and harm the attractiveness of leniency programs because whistleblowers only obtain no or only restricted protection against third-party damage claims. This may actually stabilize cartels. We run a repeated homogeneous-good Bertrand triopoly experiment to study this trade off. Firms can choose whether to join a cartel and may apply for leniency afterwards. Our design extends existing leniency experiments by adding a stage with possible private damages after a cartel has been uncovered (either through a whistleblower or by the cartel authority). We further investigate two communication formats. We compare unrestricted chat to the structured announcements (of “acceptable” prices or price ranges) the literature has focussed on. We find that the implementation of private damage claims decreases cartel formation but makes cartels more stable. The impact on consumer welfare depends on the form of communication.

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Wey, C., N. Gösser, Eine Studie im Auftrag des Bundesamts für Landwirtschaft, Bern, Schweiz.

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Zusammenfassung
Die Studie analysiert mittels eines wettbewerbsökonomischen Ansatzes die Auswirkungen des Grenzschutzes auf die landwirtschaftlichen Betriebe in der Schweiz und ihre vorgelagerten Produktionsstufen. Der Grenzschutz im Zusammenspiel mit den Direktzahlungen schafft eine Rente, die aber kaum bei den landwirtschaftlichen Betrieben verbleibt, sondern zu einem Großteil vorgelagerten Produktions bzw. Wertschöpfungsstufen zu Gute kommt. Zentrales Ziel ist es, die Gründe für diese asymmetrische Verteilung der Rente zwischen Landwirten und ihren vorgelagerten Produktionsstufen herauszuarbeiten.

Die Angebotsseite der Märkte der vorgelagerten Produktionsstufen weist oft eine hohe Konzentration auf, sodass ein wirksamer Wettbewerb nicht zu erwarten ist.1 Insbesondere existiert ein dominanter vertikal integrierter Marktakteur, der zudem auch auf den der Landwirtschaft nachgelagerten Stufen aktiv ist und als Genossenschaftsverband auftritt. Er akkumuliert damit Margen (Gewinne) über alle Stufen der landwirtschaftlichen Wertschöpfungskette, sodass er ein Hauptnutznießer des Grenzschutzregimes ist.

Eine Reihe von Indizien sprechen für ein gewinnorientiertes Verhalten des Genossenschaftsverbands. So werden viele Produktionsmittel aus unterschiedlichen Gründen zu erheblich höheren Preisen als in der EU verkauft und diverse Unternehmenszukäufe haben die Marktdominanz weiter ausgebaut. Das Ausmaß der Abschöpfung der Rente landwirtschaftlicher Betriebe durch die vorgelagerten Produktionsstufen wird nicht nur durch die hoch konzentrierte Angebotsstruktur begünstigt, sondern hängt auch kritisch vom Nachfrageverhalten der Landwirte ab. Diese Nachfrage kann vernünftigerweise als preisunelastisch unterstellt werden, was Preissteigerungen im hohen Maße profitabel macht. Der Grenzschutz schafft zudem nicht nur Renten, sondern stabilisiert die Marktverhältnisse durch zusätzliche Markteintrittsbarrieren und senkt zusammen mit den Direktzahlungen den Wettbewerbs- und Kostendruck auf die landwirtschaftlichen Betriebe, sodass diese bereit sind mehr für ihre Inputs zu bezahlen.

Haucap, J., Frankfurter Allgemeine Zeitung.

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Haucap, J., Intereconomics: Review of European Economic Policy 54, S. 201-208.

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Haucap, J., Global Mergers & Transactions, TLE-022-2019.

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Schröder, K. und C. Wey, A Study for EuroCommerce.

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The aim of our study is to provide an economic analysis of the question how territorial supply constraints (TSCs) imposed by powerful brand manufacturers on retailers affect market outcomes in retail markets, in particular from a consumer point of view. TSCs are illegitimate restrictions imposed by suppliers of “must-have” products to restrict retailers’ and wholesalers’ ability to source centrally or in the country of their choice. TSCs are not justified on grounds of different consumer taste/preferences and/or national standards and regulations and constitute a cross-border trade barrier. This implies, “(…) that a retailer, based in one Member State and dealing with a multinational supplier is not given the choice to decide from which national entity of the supplier he would preferably source the desired products and is instead referred to a specific national subsidiary.” (European Commission, 2018b, p. 91). TSCs force retailers to source products domestically and/or prevent them from “parallel trading” products from another Member State. Thus, TSCs – besides to being economically undesirable – are basically illegitimate practices, as they infringe the Single Market rules by strongly limiting retailers’ freedom to choose their suppliers.

We focus on the food value chain but most of our analysis also applies to many non-food markets. In line with the Commission’s findings in its 2013-Green Paper, we show that TSCs segment markets to enable brand manufacturers to price discriminate between different countries. TSCs constitute a cross-border trade barrier for retailers resulting in different prices for the same products within the European Union. Our analysis of more sophisticated theories (of monopolistic and oligopolistic price discrimination and new product innovations, for instance) largely confirms that TSCs imposed by powerful manufacturers harm both market efficiency and final consumers. Our study includes a critical assessment of the RBB Economics study entitled “Territorial supply constraints: the economic arguments” published in April 2013 (in short: RBB study). The RBB study concludes that cross-country price differentials due to TSCs do not negatively affect consumers but – rather to the opposite – “reflect the efficient functioning of markets” (RBB, 2013, p. 2). As we will show, such a conclusion is not valid under a reasonable and fair interpretation of the relevant economic theory and taking available empirical evidence about patterns of price differentials of branded goods in Europe into account.

Haucap, J., Conference of the German Law & Economics Association.

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Bataille, M., O. Bodnar., A. Steinmetz and S. Thorwarth, Energy Economics 81, p. 227-237.

While markets have been liberalized all over the world, incumbents often still hold a dominant position, e.g. on energy markets. Thus, wholesale electricity markets are subject to market surveillance. Nevertheless, consolidated findings on abusive practices of market power and their cause and effect in these markets are scarce and non-controversial market monitoring practices fail to exist. Right now, the Residual Supply Index (RSI) is the most important instrument for market monitoring. However, a major drawback of this index is its focus on just one specific aspect of market power in wholesale electricity markets whereas different consequences of market power are possible. Hence, markets could be distorted in several ways and we propose the “Return on Withholding Capacity Index” (RWC) as a complementary index to the RSI. The index is a measure of the firms' incentive to withhold capacity. The benefits and practicability of the RWC are shown by an application on data for the German-Austrian electricity wholesale market in 2016.

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Coenen, M. and J. Haucap, in: B. Holznagel & R. Schütz (eds.), ARegR – Kommentar zum Anreizregulierungsrecht, 137-161, 2. edition, Verlag C.H. Beck: Munich.

Haucap, J., Hamburg Tax and Legal Excellence, Local Lounge Hamburg.

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Haucap, J., Working meeting of the Studienvereinigung Kartellrecht, Duesseldorf.

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Haucap, J., Interview published in Die Welt (online).

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Haucap, J., Panel discussion, Media Convention Berlin.

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Haucap, J., Annual conference - North Rhine-Westphalian Acadamy of Sciences, Humanities and the Arts.

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Haucap, J., Annual conference 2019 - Royal Economic Society, University of Warwick, UK.

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Heimeshoff, U., enerminds Workshop der Enervis GmbH in Berlin.

Haucap, J., A. Rasch and J. Stiebale, International Journal of Industrial Organization 63, p. 283-325.

This article analyses how horizontal mergers affect innovation of the merged entity and its non-merging competitors. Using data on horizontal mergers among pharmaceutical firms in Europe and applying propensity score matching estimators, we find that average patenting and R&D of the merged entity and its rivals declines substantially in post-merger periods. We show that this result is consistent with the predictions from an oligopoly model with heterogeneous firms, as well as a patent race model, when pre-merger R&D intensity is sufficiently high. Consistent with our theoretical model, we find that negative effects of mergers on innovation are concentrated in markets with high R&D intensity and in technology classes with overlap in pre-merger innovation activities of merging and rival firms.

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Haucap, J., brandeins Podcast, interview.

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Haucap, J., CPI Antitrust Chronicle 2/2019, p. 1-7.

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Busch, C., V. Demary, B. Engels, Haucap, J., C. Kehder, I. Loebert and C. Rusche, Nomos, Baden-Baden.
Commissioned by the Federal Ministry for Economic Affairs and Energy (BMWi).

Das Wachstum der Sharing Economy birgt sowohl Chancen als auch Herausforderungen. Das Buch analysiert verschiedene Sektoren der Sharing Economy empirisch, mit einem Schwerpunkt auf dem Unterkunftssektor. Die Autoren erörtern Regulierungsoptionen und unterbreiten Vorschläge für Reallabore.

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Fischer, C. and H.-T. Normann, European Economic Review, 111, 360-379.

In asymmetric dilemma games without side payments, players face involved cooperation and bargaining problems. The maximization of joint profits is implausible, players disagree on the collusive action, and the outcome is often inefficient. For the example of a Cournot duopoly with asymmetric cost, we investigate experimentally how players cooperate (collude implicitly and explicitly), if at all, in such games. In our treatments without communication, players fail to cooperate and essentially play the static Nash equilibrium (consistent with previous results).

With communication, inefficient firms gain at the expense of efficient ones. When the role of the efficient firm is earned in a contest, the efficient firm earns higher profits than when this role is randomly allocated. Bargaining solutions do not satisfactorily predict outcomes.

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Haucap, J., Ministry of Economic Affairs, Innovation, Digitalisation and Energy of the State of North Rhine-Westfalia.

Haucap, J., I. Loebert, S. Thorwarth, C. Helle and O. Raschka, Energiewirtschaftliche Tagesfragen (et), issue 1/2, 80-82.

Haucap, J. and A. Pfannenschmidt, in: P. Rosin and A. Uhle (eds.), Recht und Energie: Liber amicorum für Ulrich Büdenbender zum 70. Geburtstag, 215-242, De Gruyter Oldenbourg: Berlin.

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Haucap, J. and H. Hoch (eds.), De Gruyter Praxishandbuch.

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Schweitzer, H., Haucap, J., W. Kerber and R. Welker, Wirtschaftsrecht und Wirtschaftspolitik, 297, Nomos Verlag.
Commissioned by the Federal Ministry for Economic Affairs and Energy (BMWi).

Die Entwicklungen in der digitalen Wirtschaft, darunter die zunehmende Bedeutung von Daten als kritischer Inputressource in Produktions- und Distributionsprozessen und von digitalen Plattformen, gehen mit neuartigen Wettbewerbsgefährdungen einher. Sie werfen die Frage auf, ob das geltende deutsche und europäische Kartellrecht gewappnet ist, diesen wirksam und rechtzeitig zu begegnen. Das Bundesministerium für Wirtschaft und Energie (BMWi) hat die Autoren beauftragt zu untersuchen, ob die kartellrechtlichen Regeln zum Schutz vor dem Missbrauch wirtschaftlicher Macht hinreichend klar und effektiv sind. Das Ergebnis dieser Untersuchung ist die vorliegende Studie, die vertiefte Analysen und Empfehlungen zum Reformbedarf der kartellrechtlichen Missbrauchsaufsicht liefert.

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Heimeshoff, U., Wirtschaftsdienst, 98, 538.

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Buchwald, A. and S. Thorwarth, International Journal of Economics and Business Research, 16 (2), 210-231.

We investigate the influence of non-executive outside directors on firms’innovative performance for a sample of 1,393 listed firms in the EU-15 member states plus Norway and Switzerland in the period 2005 to 2010. Our results show that the fraction of non-executive outside directors on the board is associated with a significant decrease in the number of patent applications if competition in the market is low. This may indicate that restrictive monitoring and lower advising competences of outside directors mitigate executives’ incentives to innovate. In industries with effective competition, the negative influence of outsiders is offset by the pressure to focus on innovation strategies.

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Baye, I., V. Von Schlippenbach and C. Wey, Journal of Industrial Economics, 66, 66-94.

We analyse how consumer preferences for one‐stop shopping affect the (Nash) bargaining relationships between a retailer and its suppliers. One‐stop shopping preferences create ‘demand complementarities’ among otherwise independent products which lead to two opposing effects on upstream merger incentives: first a standard double mark‐up problem and second a bargaining effect. The former creates merger incentives while the later induces suppliers to bargain separately. When buyer power becomes large enough, then suppliers stay separated which raises final good prices. We also show that our result can be obtained when wholesale prices are determined in a non‐cooperative game and under two‐part tariffs.

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Wey, C., Interview published in Die Zeit (online).

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